Wall Street slide continues

  • Associated Press
  • Friday, July 23, 2004 9:00pm
  • Business

NEW YORK – Wall Street skidded further Friday, sending the Dow Jones industrials back below 10,000 as disappointments from Microsoft Corp. and Amazon.com Inc. deepened investors’ dread of a second-half earnings slump.

All three indexes ended the week lower for the fourth straight week, as investors sold stocks across all sectors and industries, with technology and consumer staples taking the brunt of the sell-off. The tech-heavy Nasdaq composite index fell to its lowest point of the year.

The drop was triggered by lower-than-expected earnings from Microsoft – a rare miss that unnerved investors. And Wall Street saw Amazon.com’s lower-than-expected earnings and revenues as a potential sign that consumer spending was slowing.

Combined with economic data that has pointed to what Federal Reserve Chairman Alan Greenspan called a “soft spot” in the economic recovery, the week was a brutal one throughout the markets.

“You take the economic data over the last few weeks, which has been disappointing, and now all these negative earnings outlooks, and then you add in all the worries about energy prices, terrorism, Iraq, the elections – there’s a lot to worry about out there,” said Michael Sheldon, chief market strategist at Spencer Clarke LLC. “It’s going to take a while for these issues to be resolved, and I think we’ll be stuck moving sideways to lower until then.”

The Dow Jones industrial average fell 88.11, or 0.9 percent, to 9,962.22. It was the first time the Dow closed below 10,000 since May 24.

Broader stock indicators were also sharply lower. The Nasdaq composite index dropped 39.97, or 2.1 percent, to 1,849.09, its lowest closing level in 2004. The Nasdaq is now 7.7 percent lower for the year.

The market has been sinking steadily since early July, when a disappointing jobs report from the Labor Department ended hopes for a summer rally and also started giving investors doubts about the strength of the economy.

Since then, other downbeat economic data and a series of surprisingly poor second-half earnings outlooks have taken the market lower and lower, although the majority of second-quarter results have surpassed estimates.

Still, many analysts noted Friday that with the major indexes near or below their year-to-date lows, the market has nonetheless managed to find a discernable bottom, and most expected the major indexes to trade in this lower range until enough time passes to assuage at least some of investors’ fears.

“We have to get past some of these milestones on the calendar – the conventions, the Olympics, the Fed meeting on Aug. 10, even the elections – and we have to get through them unscathed,” said Jeff Kleintop, chief investment strategist for PNC Financial Services Group.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

FILE — Boeing 737 MAX8 airplanes on the assembly line at the Boeing plant in Renton, Wash., on March 27, 2019. Boeing said on Wednesday, Feb. 21, 2024, that it was shaking up the leadership in its commercial airplanes unit after a harrowing incident last month during which a piece fell off a 737 Max 9 jet in flight. (Ruth Fremson/The New York Times)
Federal judge rejects Boeing’s guilty plea related to 737 Max crashes

The plea agreement included a fine of up to $487 million and three years of probation.

Neetha Hsu practices a command with Marley, left, and Andie Holsten practices with Oshie, right, during a puppy training class at The Everett Zoom Room in Everett, Washington on Wednesday, July 3, 2024. (Annie Barker / The Herald)
Tricks of the trade: New Everett dog training gym is a people-pleaser

Everett Zoom Room offers training for puppies, dogs and their owners: “We don’t train dogs, we train the people who love them.”

Andy Bronson/ The Herald 

Everett mayor Ray Stephenson looks over the city on Tuesday, Jan. 5, 2015 in Everett, Wa. Stephanson sees  Utah’s “housing first” model – dealing with homelessness first before tackling related issues – is one Everett and Snohomish County should adopt.

Local:issuesStephanson

Shot on: 1/5/16
Economic Alliance taps former Everett mayor as CEO

Ray Stephanson will serve as the interim leader of the Snohomish County group.

Molbak's Garden + Home in Woodinville, Washington will close on Jan. 28. (Photo courtesy of Molbak's)
After tumultuous year, Molbak’s is being demolished in Woodinville

The beloved garden store closed in January. And a fundraising initiative to revitalize the space fell short.

Everett Mayor Cassie Franklin, Advanced Manufacturing Skills Center executive director Larry Cluphf, Boeing Director of manufacturing and safety Cameron Myers, Edmonds College President Amit Singh, U.S. Rep. Rick Larsen, and Snohomish County Executive Dave Somers participate in a ribbon-cutting ceremony on Tuesday, July 2 celebrating the opening of a new fuselage training lab at Paine Field. Credit: Arutyun Sargsyan / Edmonds College
‘Magic happens’: Paine Field aerospace center dedicates new hands-on lab

Last month, Edmonds College officials cut the ribbon on a new training lab — a section of a 12-ton Boeing 767 tanker.

Gov. Jay Inslee presents CEO Fredrik Hellstrom with the Swedish flag during a grand opening ceremony for Sweden-based Echandia on Tuesday, July 30, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Swedish battery maker opens first U.S. facility in Marysville

Echandia’s marine battery systems power everything from tug boats to passenger and car ferries.

Helion Energy CEO and co-founder David Kirtley talks to Governor Jay Inslee about Trenta, Helion’s 6th fusion prototype, during a tour of their facility on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
State grants Everett-based Helion a fusion energy license

The permit allows Helion to use radioactive materials to operate the company’s fusion generator.

People walk past the new J.sweets storefront in Alderwood Mall on Thursday, July 25, 2024, in Lynnwood, Washington. (Olivia Vanni / The Herald)
New Japanese-style sweets shop to open in Lynnwood

J. Sweets, offering traditional Japanese and western style treats opens, could open by early August at the Alderwood mall.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.